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A look at the performance of single stock daily leverage certificates (DLCs) traded on the Singapore Exchange. Ten new ones were launched in February and have already seen substantial trading activity.

There are almost 100 companies listed on the Singapore Exchange that are headquartered or have their principal place of business in mainland China. Some of them delivered stellar returns in the early 2019.

Singapore’s 10 largest technology stocks have made a strong start to 2019, with average total returns of 25.2% in the first two months of the year on a soaring combined trading turnover and large institutional inflows.

Five best performing SGX-listed China stocks have delivered average returns of 18% in the first two months of 2019. Over the last three years, however, China stocks listed in Singapore underperformed the STI benchmark.

Singapore's big utility stocks have made a firm start to 2019, with average total returns of 17%, rebounding from a decline of 31% in 2018. Utilities led other sectors in market cap weighted performance in December 2018 and January 2019.

Despite concerns over slowing global growth, Singapore’s tourism sector has enjoyed consistent growth in international arrivals over the past four years. Nevertheless, 15 largest SGX stocks with exposure to the tourist industries lost 10.7% on average in 2018.

Singapore’s healthcare service providers have pursued international expansion plans in recent years, with operations and assets spanning multiple geographies outside Singapore, allowing investors to participate in the structural Asian healthcare theme.

Singapore’s largest capitalised developers and REITs with a strong Singapore focus have made a firm start in the early 2019. The largest capitalised construction stocks have also performed similarly to the developers over the past two years.

Six of the seven poorest performing STI stocks in 2018 were amongst the STI’s 10 strongest stocks in the early 2019. The six stocks, which averaged 30% declines in total return in 2018, have averaged 11% gains over the first three weeks of 2019.

As Grand Venture Technology (GVT), a Singapore-based manufacturing and industrial service provider, makes its debut on SGX Catalist, the exchange provides a brief overview of the semiconductor equipment industry.

Regional small cap indices were amongst the stock market’s worst performing segments in 2018 due to the rising US Dollar, trade tensions & decelerating growth outlooks. However, in the first three weeks of 2019, they regained a third of last year's loss.

In a challenging market environment, S-REITs were among the best-performing sectors on SGX in November and December 2018. The interest in S-REITs was driven by a flight to safety amidst rising risk-aversion.

The FTSE Value-Stocks ASEAN Index was amongst the strongest FTSE regional indices over the three years ending 2018. Its total return of 42% in USD terms outpaced 37 other regional indices published by FTSE Russell.

In the second half of 2018, Singapore's healthcare sector saw six consecutive months of net inflows by institutional investors, following increased risk aversion on the back of higher market volatility and persistent US-China trade tensions.

Last year, SGX’s industrials sector was the second best-performing segment with a market cap-weighted average total return of 1.0%, following the Materials Sector’s market cap-weighted average total return of 30.1%.

In December 2018, 32 SGX stocks listed on SGX repurchased 97 million shares for a total consideration of S$78 million. Overall, 100 stocks conducted buybacks in 2018, and the value of the buybacks was triple that of 2017.

In the past ten years, the STI generated average annualised total returns of 9.2%, one-fifth higher than the regional Asia Pacific benchmark, and in line with the FTSE ASEAN 40 Index. Which stocks delivered the highest returns?

In the 2018 YTD, the STI has generated a total return of -6.8%. This compares with YTD total returns of +0.2% for the Nikkei 225, -5.1% for the ASX 200, -6.7% for the Hang Seng Index, and -19.5% for the Shanghai Composite Index.

In November, 29 SGX-listed stocks repurchased 40 million shares for a total consideration of S$109 million. This was up from S$60 million in buyback consideration in October, and S$39 million in November 2017.

Investor interest in Singapore REITs has revived recently, driven by a flight to safety amidst rising risk-aversion, as the US - China trade tensions continue to simmer. Sentiment has also been boosted by improving fundamentals in the domestic office and hotel property segments.

For the second time in October, the STI has opened at least 1% lower from the previous day close, on the back of an overnight sell-offs in US equities. The overnight moves coincided with a significant focus on safeguards for consumer data privacy in the US.

Statistics show that global coal consumption and production has picked up for the first time in 2017, after several years of declining growth, driven by increased consumption from Asian countries: India, Japan and China.

Industrials were amongst Singapore’s three best performing sectors in September 2018. The 10 largest capitalised industrial stocks averaged a 7.1% total return for the month, and followed with 1.2% average gains for the first two sessions of October.

In September, 35 SGX companies repurchased 32 million shares for a total consideration of S$94 million. The buyback has brought the total consideration over the first nine months of 2018 to S$1.3 billion, which is three times the total in 2017.

The four SGX-listed retail S-REITs have outperformed the STI benchmark index in the first three quarters of 2018. Despite growing risk-averse sentiment, investor expectations of a downside were fairly subdued, underpinned by the sector's strong earnings profile and its perceived defensive nature.

Singapore’s healthcare sector, typically viewed as a defensive segment and poised to enjoy multi-year growth prospects, has benefited from rotational fund flows recently, as investors took refuge in haven assets following a rise in risk-aversion.

An overview of the capital-raising activities of healthcare companies listed on the Singapore Exchange between 2013 and 2018. The 31 companies constituting the SGX All-Healthcare Index raised US$1 billion during that period, through primary and secondary activities.

SGX looks at companies listed in Singapore whose primary business includes traditional and online retail as well as e-commerce operations. It examines which companies have best adapted to the growth of the e-commerce industry.

Singapore lists six stocks with a market capitalisation above S$1 billion that maintain a significant Agriculture business. Swings of the six stocks in recent years have coincided with swings of international agriculture commodity prices.

Institutions have been net buyers of four of the six stocks over the first seven months of 2018. Overall the six stocks were together subject to net buy inflows totalling S$81 million, led by inflows into Wilmar International, Japfa and Olam International.

In the 2018 YTD, the six stocks averaged 4% gains compared to the global agriculture benchmarks generating marginal declines. Four of the six reported net profit growth in 2QFY18 & Japfa’s stock performance is the strongest of the six in the 2018 YTD.

SGX lists close to 100 stocks with market cap above S$1 Billion and a ROE of above 10%. Over the last 12 months, Banks and Consumer stocks were the strongest play among the list of highest ROE billionaire stocks compared to the benchmark Straits Times Index (STI).

Amongst the list, seven are trusts (REITS, Stapled Trusts or Business Trusts) and the remaining 32 are companies spanning across multiple industries including Banks, Consumer, Technology and Property Developers.

Over the last 12 months, the five best performers were DBS (+30.9%), Sheng Siong Group (+24.4%), UOB (+19.4%), Venture Corp (+19.1%) and Dairy Farm Int’l (+17.1%). Collectively, these five stocks produced an average 1 year total return of +22.2%.

For the first 12 sessions of August 2018, share buyback consideration has exceeded S$100 million. This is the seventh successive month the S$100 million threshold has been crossed, with buyback consideration in excess of S$1 billion for the 2018 YTD.

The 23 stocks that have conducted share buybacks in the August MTD have bought back a total of 17.7 million shares for a consideration of S$116.5 million. The buyback consideration was led by DBS Group Holdings, United Overseas Bank and CapitaLand.

Singapore’s Manufacturing sector grew by a robust 10.2% YoY in 2Q18, extending the 10.8% YoY growth in 1Q18 and 10.1% YoY expansion in 2017. Manufacturing has been a keen driver of Singapore’s GDP growth which has been on trending higher since the end of 2015.

ST Engineering, Yangzijiang Shipbuilding, Venture Corp, Sembcorp Marine and Haw Par Corp are amongst Singapore’s five biggest manufacturing plays excluding F&B manufacturing. Since the end of 2015, the five stocks have averaged a 51% total return.

The five stocks have also recently reported their 2QFY18 and 1HFY18 earnings, with four stocks reporting net profit growth. These four stocks averaged 2QFY18 net profit growth of 40% YoY and 1HFY18 net profit growth of 35% YoY.

The FTSE Value-Stocks ASEAN Index has generated a 12% total return in SGD terms over the past 12 months, outperforming both the FTSE/ASEAN 40 Index with a 10% total return and FTSE ASEAN All-Share Index with a 3% total return

The FTSE Value-Stocks ASEAN Index is comprised of the largest capitalised stocks of the FTSE Global All Cap Index that meet three sets of value-investing screening criteria, namely Contrarian, Quality & Valuation screenings which are then ranked by lowest P/E Ratios.

Singapore’s 10 constituents of the FTSE Value-Stocks ASEAN Index have averaged a 9% total return over the past 12M, ranging from -12% for Jardine C&C to 30% for DBS Group Holdings. In May 2018, two stocks, A-REIT and Venture, re-joined the Index.

Four of the stocks represent approx. 13% of the STI and approx. 7% of the MSCI Hong Kong Index. Jardine Matheson, Jardine Strategic and Hongkong Land are in both indices, while Jardine Cycle & Carriage is in the STI and Dairy Farm International is in the MSCI Hong Kong.

The six stocks have averaged a 5.9% price gain in the 2018 YTD, with dividends boosting their SGD total return to 7.6% (both in SGD terms). Five of the six stocks are secondary listings and traded in USD, with the primary listed Jardine Cycle & Carriage traded in SGD.

There are nearly 200 companies listed on SGX that have a market cap range of S$100 million to slightly above S$2 billion. Based on classifications by the FTSE ST Index series, these stocks fall into the small-cap category.

Within this universe of 200 small-cap stocks, more than 30 of them derive 50% and above of group revenues from China. They are categorised to the Real Estate, Consumer, Industrials, Materials, IT, Utilities, Energy, Health Care, and Financial sectors.

Among these small-cap China plays, the five best performers are: Techcomp (+143.9%), Delong (+115.1%), China Sunsine Chemical (+76.2%), Weiye (+40.2%), and Memtech International (+33.5%). They have averaged a total return of 81.8% in the YTD, bringing their 12-month and three-year average total returns to 122.9% and 252.5% respectively.

There are 18 healthcare service providers listed on SGX that operate patient care services and facilities in Singapore and globally. These facilities include laboratories, hospitals, and clinics that offer treatments ranging from family medicine, dentistry, endoscopy and TCM, to aesthetics, gynaecology, oncology, orthopaedics and ophthalmology.

In the July MTD, the five best-performing healthcare service providers were: Aoxin Q & M Dental (+11.6%), Raffles Medical (+10.8%), Q & M Dental (+7.8%), TalkMed (+4.9%), and Singapore O&G (+4.4%). These five healthcare plays have averaged a MTD total return of 7.9%, bringing their YTD and one-year total returns to -2.4% and -8.5% respectively.

Thomson Medical, one of the latest additions to the healthcare plays on SGX, is Singapore’s second-largest healthcare services provider with a market capitalisation of more than S$2 billion. Previously known as Rowsley Ltd, it began trading on SGX Mainboard under its new name on 30 April 2018.

Of the 13 Restaurant stocks listed on SGX, the 10 largest have a combined market capitalisation of close to S$2.0 billion. Most of these companies have businesses outside of Singapore or overseas expansion plans.

These SGX-listed Restaurant stocks provide investors opportunities to invest in overseas F&B markets through their expansion plans. Stocks such as BreadTalk Group, Jumbo Group and Japan Foods have outlined notable international expansion plans.

The 10 largest Restaurants stocks have an average dividend payout ratio of 62.2% and average dividend yield of 2.5%. Recently listed Restaurant stocks in the past year have also indicated on their IPO prospectuses or offer documents intentions to distribute dividends to shareholders.

The FTSE ST Small Cap Index is a free float-adjusted, market capitalisation-weighted index, which represents the performance of small-capitalised companies that trade on SGX Mainboard. The Index comprises 65 constituents with an average market capitalisation of S$750 million.

The 10 constituents of the FTSE ST Small Cap Index with the highest ROE levels, based on their most recent full-year financial results, have averaged an ROE of 30%. These 10 stocks are categorised to the industrials, consumer, energy, materials, information technology, and healthcare sectors.

The five constituents among the 10 with the highest ROEs are: COSCO Shipping International (62.0%), Best World (50.6%), Sheng Siong Group (26.7%), Geo Energy Resources (26.4%), and UMS Holdings (25.7%).

The FTSE ST Small Cap Index comprises 65 constituents that average a market cap of S$750 million, ranging from S$103 million to S$2.6 billion. Beyond the Index are nearly 200 stocks listed on SGX that fall within this market cap range.

The 10 largest constituents of the FTSE ST Small Cap Index account for about 40% of index weight, and represent the Real Estate sector. Nine of them are REITs, while one is a real estate developer. Given the significant Real Estate weighting, the Index maintains a relatively high dividend yield of 3.8%, almost on par with the STI’s 4.0% yield.

In the YTD, the five best-performing Index constituents were: China Sunsine Chemical (+69.4%), BreadTalk (+40.9%), Japfa (+27.8%), Tianjin Zhongxin Pharma (+20.1%), and HRnetGroup (+19.1%). These five stocks averaged a +35.5% total return in the YTD, bringing their average 12-month total return to +28.6%.

The non-weighted average 90 day volatility of the 30 STI constituents increased by a third over the first six months, rising to an annualised 22.5% at the end of June, up from 16.7% at the end of 2017.

As many as 15 STI stocks averaged daily trading ranges over 1.50% in the first six months of the year, ranging from UOL Group & Wilmar’s 1.52% to Yangzijiang Shipbuilding’s 3.24%. These 15 stocks averaged 21.4% intraday volatility over the six months.

The five STI stocks with the highest intraday volatility for the six months were YZJ Shipbuilding, HPH Trust, Genting Singapore, Venture & ComfortDelGro, averaging 27.5% intraday volatility. The STI stocks with the least intraday volatility were OCBC, SingTel, UOB, SGX and Hongkong Land.

Four of the five biggest weights of the SGX All Healthcare Index have gained in the 2018 YTD leading the Index to a 6% total return for the period. Top Glove Corp Bhd has been the strongest performer with a 56% total return.

The Healthcare Sector was also the strongest of the Sectors in Singapore in June. While the Sector saw net institutional outflow of S$0.4 million in June, it was one of just two Sectors that had booked inflow for each of the three preceding months of March through May.

SGX lists two trusts and more than 20 companies that derive more than half their group revenues from Indonesia.

Among them, three of the best performers in the 2018 year-to-date were: Samurai 2K Aerosol (+60.2%), Japfa (+22.8%) and Moya Holdings (+3.3%). The three, with a combined market capitalisation of S$1.59 billion, have averaged a total return of 28.8% in the YTD.

Indonesia’s 1Q 2018 GDP expanded 5.06% YoY, slower than the 5.19% growth seen in 4Q 2017, due to lower household spending, government expenditures and net exports. However, investment growth continued, rising to 7.95% in 1Q versus 7.27% in 4Q and 4.77% a year ago.

Singapore Airlines, ComfortDelGro & SBS Transit have all gained in the 2018 YTD, averaging 8.0% total returns, compared to a 3.1% decline for the FTSE ST All Share Index. Since the end of April, the trio averaged 1.6% total returns, compared to 8.2% declines for the benchmark.

Amidst fuel prices advances, the trio have been expanding their operational landscapes with SIA’s digital innovation blueprint and new fleet & product offerings, ComfortDelGro stepping up the pace of M&A activity and SBS Transit expanding rail and bus services.

The key transportation trio have averaged 9.5% annualised returns over a the past five years, led by SBS Transit which has also consistently increased its dividends per share over the period. The trio currently average an indicative dividend yield of 3.7%.

The STI benchmark consists of the 30 largest and most active stocks traded on SGX. The next five largest and most active stocks make up the STI Reserve List. This list is used in the event one or more STI constituents are deleted before the next quarterly review.

The current STI Reserve List stocks are Suntec REIT, Sembcorp Marine, Mapletree Commercial Trust, Keppel REIT & Mapletree Logistics Trust. The list has changed completely from the end of2013, with four of the five then STI Reserve stocks since joining the STI.

The current five STI Reserve stocks have averaged 10% total returns over the past 12 months, taking their average five year return to 29%. Four of the five stocks are REITS that currently maintain an average indicative dividend yield of 5.7%.

The 19 June trading session saw Venture as the fifth most actively traded company with S$91M in turnover. AEM Holdings, Hi-P International, UMS Holdings, Creative Technology & Valuetronics also ranked in the top 40 companies by turnover.

These stocks make up six of the 10 largest capitalised Technology stocks listed on SGX that generated a median decline of 8% in the 2018 YTD, following median gains of 93% over 2017. The SIPMM Electronics Cluster PMI is now at 52.3, down 0.9 from the end of 2017.

Technology is earmarked as a key driver of U.S. growth. The Trump Administration estimates 5G will potentially create up to 3 million new American jobs and generate US$500 billion a year in economic growth. This is akin to a 2.5 percentage point increase in U.S. GDP.

The two listed supermarket plays - Dairy Farm International and Sheng Siong Group - have averaged 2.9% gains since the end of April. This has taken their average 2018 year-to-date total return to 12.3%.

Dairy Farm International joined the MSCI Singapore Index effective 1 June. For the 2018 year through to 15 June, Dairy Farm International was the recipient of overall institutional net inflows totalling S$26.4 million while Sheng Siong Group was the recipient of net institution inflows of S$62.4 million.

The five largest capitalised Restaurant stocks - BreadTalk, Kimly, Jumbo Group, Old Chang Kee and Japan Food Holdings have averaged 1.7% gains between 30 April and 18 June, bringing their average year-to-date total return to 6.6%. Note this does not include ABR Holdings which has comparatively inactive trading.

Following comparatively strong performances in 2017, the 10 largest capitalised stocks that operate in, or maintain a service focus to semiconductor businesses have been more mixed in the 2018 YTD, averaging a 4% decline.

This has brought the average 12 month total return of the 10 stocks to 19%, which compares to a 12% gain for Bloomberg Asia Pacific Semiconductors Index. The strongest of the 10 stocks over the past 12 months were AEM Holdings and Micro-Mechanics.

Key drivers relevant to the industry include increased memory demand and proliferation of digital technologies. At the same time more complex application, increased industry competition and trends to cut costs provide industry challenges.

More than 75% of Singapore REITs & Property Trusts own and manage overseas assets across Asia Pacific, Europe and the United States. This growing trend within the REIT Sector has seen trusts with Singapore and overseas exposure rise from 18 in 2012 to 33 in 2018.

Of Singapore’s 10 most recent REIT Sector listings, nine are exclusively managing properties located outside of Singapore. These nine REITs maintain a combined market capitalisation of S$8.3 billion and have averaged 13.8% total returns since their IPO.

REITs with international property assets bring diversification benefits to investors, in addition to increased risks which include foreign exchange exposures. REITs generally seek to borrow in the same currency as the underlying assets, hence mitigating some of the currency risk.

In the 2018 YTD, the five best-performing constituents of SGX’s Real Estate Index were Yanlord Land (+11.1%), United Engineers (+8.4%), Ho Bee Land (+6.0%), Hongkong Land (+4.9%), and Ocean Sky (+4.3%).

The SGX Real Estate Developers & Operators Index comprises 25 constituents with a combined market cap of over S$70 billion. The component stocks with the five biggest weights are Hongkong Land (10.6%), UOL Group (9.8%), CapitaLand (9.8%), City Developments (9.2%) and Yanlord Land (9.0%).

This year, Singapore's property market is expected to extend its recovery. In 1Q18, private residential property prices jumped 3.9% QoQ, surging the most since 2010, and building on the previous quarter’s 0.8% rise, URA data showed. Analysts are forecasting a 5%-10% recovery in domestic home prices in 2018.

Singapore lists three stocks that make up the Insurance Sector - Great Eastern Holdings, United Overseas Insurance and Singapore Reinsurance Corp. The three stocks have a combined market value of S$15.5 billion.

Together the three stocks have averaged a 8.6% total return in the 2018 YTD, bringing their average 12M return to 31.4%. By comparison the MSCI World Insurance Index has gained 1.8% in the YTD, bringing its 12M total return to 10.5% in SGD terms.

While intensified competition and economic uncertainty provide challenges, the insurance industry is expected to further diversify distribution channels while exploring and engaging digital innovation.

SGX lists 49 Materials stocks as categorised by GICS®. The sector, which comprises businesses involved in the processing of raw materials, has generated a market capitalisation-weighted total return of 32.9% in the 2018 YTD.

Singapore’s 10 best-performing Materials stocks have averaged a total return of 32.8% in the YTD, bringing their average one-year and three-year total returns to 74% and 141.6% respectively. In the YTD, these 10 stocks have generated a median total return of 27.3%, with median total returns over the last 12 months and past three years rising to 49.2% and 129.0% respectively.

The improved global economic outlook this year has contributed to the robust performance of the Materials stocks. The sector’s two best performers – China Sunsine Chemical and Delong – are also benefiting from steady growth in China’s economy, which expanded by a better-than-expected 6.8% in 1Q 2018.

In the 2018 YTD, Singapore’s 34 REITs and six Stapled Trusts have averaged a 1.8% decline in total return, trimming the 12M average total return to 9.1%. The strongest performing REITs in the YTD were Sabana Shariah, Cromwell EUR, BHG Retail, Manulife US & IREIT Global.

The FTSE ST REIT Index currently maintains a 6.0% yield which is 3.3% above Singapore 10 year Government Bond Yields at 2.7%. Since Sep 2009, the yield differential between the Index and bonds has averaged 4.1.

In the first month of tick reduction, the SPDR® STI ETF best bid-ask improved by 52%, reducing from 0.33% to 0.16% compared to the prior month. This means that investors can now transact on the STI ETF with lower cost (in terms of bid-ask spreads) than before.

The market depth value on the SPDR® STI ETF order book at the S$0.01 range has also grew by +59% from an average of S$0.94mil to S$1.5mil.

Asia Pacific lists some 500 stocks that represent the Health Care Equipment & Services Industry Group within the GICS® Health Care sector. This key segment of the region’s Health Care Stocks has seen its combined market cap grow fourfold over the past 10 years.

Coinciding with burgeoning Health Care demands & comparatively less services than OECD averages, regional expansion of the Health Care Equipment & Services capitalisation has well outpaced that of the World, and was led by expansion in Asia’s Developing markets.

Singapore’s biggest Health Care Equipment & Services stocks averaged 8% returns in the 2018 YTD, bringing their 12M average total return to 15%. Like the region, returns were mixed with 2018 YTD performances ranging from -17% for SOG to +125% for TechComp Hldgs

The STI continued to outperform the region in April with Bank-led gains driving the STI’s total return to 7.1% over the first four months of 2018. This compared to an average decline of 0.1% for the benchmarks of Japan, Hong Kong and Australia.

The three strongest sector segments in April included Banks, with capitalisation-weighted gains of 10.7%, followed by Telecommunication Services and Consumer Staples, both with capitalisation weighted returns of 4.0%.

M1 led the performances of the largest Telecommunication Services stocks in April with a 7.6% total return, whilst Thai Beverage PCL and Sheng Siong Group led the largest Consumer Staples stocks with 9.6% and 9.7% respective returns.

DBS, OCBC and UOB averaged 8% gains in April-to-date, bringing average YTD total returns to 14%, and 12 month average total returns to 50%. April has seen the three banks trade at all-time highs, with DBS recently trading at a high of S$30.00.

The three banks currently average a 1.5x P/B, above the 10 year average P/B, and in-line with the 20 year average. In the YTD institutional investors were net buyers of the three banks, with inflows totalling S$1.12 billion, following net inflows of S$3.39 billion in 2017.

The SGX All Healthcare Index has gained 4.6% in the 2018 YTD, similar to the MSCI AC Asia Pacific Health Care Index returns of 4.7%, and higher than the MSCI World Health Care Index decline of 2.1.

The five largest capitalised stocks of the SGX All Healthcare Index include IHH Healthcare Bhd, Top Glove Corp Bhd, Haw Par Corp, Raffles Medical Group and Tianjin Zhong Xin Pharm Group. All five stocks have gained in the YTD, with average total returns of 11.6% and median total returns of 5.7%.

Of these five stocks, the strongest two stocks both in the 2018 YTD and past 12M maintain a strong product focus – Top Glove Corp, with a product presence in virtually every corner of the globe, and Haw Par Corp, with a global consumer base for its Tiger Balm products.

Malaysia’s economy is expected to grow by 5.3% in 2018, with BNM citing favourable income and labour market conditions, spending on new and ongoing infrastructure projects and sustained capital investment by firms in manufacturing and services sectors.

Singapore’s 10 largest capitalised stocks that report the majority of their revenue to Malaysia have averaged a 4% gain in the 2018 YTD. The 10 stocks span six Sectors, with the 2018 YTD gains taking their average 12M average total return to 20%.

Over the past 12M, Sunright led the performances of the 10 stocks, with a 136% total return. As one of the world’s largest independent providers of burn-in and test services, it reported 1HFY18 (ending 31 Jan) PBT YoY growth of 25%, building on PBT YoY growth of 75% in FY17.

Heliconia Capital Management, a wholly owned subsidiary of Temasek Holdings, is an investment firm that focuses on growth-oriented Singapore companies.

Heliconia has been a shareholder of Kimly, Sanli Environmental, HRnetGroup and RE&S Hldgs which all listed in 2017. The investment firm has also been a shareholder of Jumbo Group which listed in 2015. These five stocks have averaged a 43% gain from their IPO dates.

Three of these stocks are consumer-focused F&B plays - Jumbo Group, Kimly and RE&S Hldgs. Last year, Jumbo Group continued to expand its international network, Kimly organically expanded its shops and stalls in Singapore, and RE&S Hldgs opened new outlets.

Asia’s accelerated ageing rates and the rise of lifestyle diseases will likely boost the region’s healthcare spending outlook in coming decades, while in supply terms, the region’s medical facilities, equipment and manpower will continue to trail the per capita averages of the 34 OECD member countries. SGX-listed healthcare plays that derive significant revenues from markets beyond Singapore have exposure to these robust demand-supply dynamics.

Singapore’s listed healthcare sector, as tracked by the benchmark SGX All-Healthcare Index, consists of 30 companies and related trusts with a combined market capitalisation of more than S$34 billion. Seven of the 10 largest constituents of the Index report more than a third of group revenues to Asia Pacific ex-Singapore, namely Southeast Asia, North Asia and South Asia.

Healthcare stocks posted a mixed performance in 2017, as funds rotated out of defensives into cyclical plays. However, the tide has turned over the last few weeks, making Healthcare the best-performing sector on a market capitalisation-weighted basis in the month of December, and positive momentum continuing into the New Year.

Asia’s MedTech (Medical Technology) Sector is expected to become the second largest globally by 2020 (with CAGR of 8%). Singapore is becoming a regional MedTech hub as supportive government policies and the manufacturing sector contribute positively.

SGX lists four stocks with MedTech businesses (Clearbridge Health, Techcomp Holdings, Vicplas International and QT Vascular) with a combined market capitalisation of S$413 million. Clearbridge Health is a recent debutant with management announcing an acquisition a month after its listing.

A handful of SGX IT companies have also diversified some of their businesses into MedTech. There are six SGX IT stocks generating revenue from MedTech, of which three are EMS providers.

Oral medicine specialist Dr Shao Yongxin has always been fascinated by the artistry and technical expertise involved in the practice of dentistry.

The standards of excellence demanded by the profession, and Shao's willingness to strive for perfection in his craft, were catalysts for his three decade-long journey in stomatology, a science that deals with the mouth and its diseases.

Singapore’s 10 largest capitalised Health Care stocks have averaged 3.3% price gains for the first five sessions of 2018, following on from average 13.2% gains in 2017. On a market-capitalisation weighted basis, Health Care was the strongest of the Sectors in the last month of 2017.

Amongst these 10 stocks, Top Glove Corp Bhd, Q&M Dental Group Singapore and Tianjin Zhong Xin Pharmaceutical have performed the strongest over the past five sessions, averaging 8.3% gains. On 19 Dec, Top Glove Corp Bhd reported 44% YoY growth in Net Profit for its 1QFY18 (ending 30 Nov).

Clearbridge Health which focuses on precision medicine in Asia, in addition to providing laboratory and Health Care services, listed on 18 December. Its stock price closed yesterday at 46.5 cents, which was two-thirds higher than the IPO price of 28 cents.

In 2017, 82 SGX-listed companies conducted share buybacks, with a total consideration of S$425 million. This was just over half the S$826 million in consideration for 2016, coinciding with comparatively stronger STI price gains of 18.1% in 2017.

OCBC buybacks accounted for 52% of the S$425 million consideration, with Keppel Corporation, Silverlake Axis, Yanlord Land Group, ST Engineering and SIA Engineering the next highest ranking by consideration.

For the month of Dec 2017, there were a total of 28.3 million shares repurchased by 27 companies, with a total consideration of S$42.9 million. Buyback consideration was up 9% from the S$39.4 million reported for Nov 2017 and up more than fourfold from Dec 2016.

Venture Corporation is expected to join the STI effective Friday 5 Jan, with the last trading day of existing STI constituent, Global Logistic Properties, expected to be 4 Jan. Venture was selected as it maintained the highest market capitalisation of the STI Reserve on the 2 Jan close.

Venture is expected to make up between 1.5% and 2.0% weightage in the STI, based on public free-float information and STI weights as of 29 Sep 2017. The IT Sector will then be represented within the STI and the Real Estate Sector is expected to reduce its weightage in the STI by 3.0% to 15.6%.

In October, Indonesia's reference coal price, known as Harga Batubara Acuan (HBA), jumped 2.1% month-on-month to US$93.99 per metric tonne, after soaring 9.6% month-on-month in September, according to data from the country's Ministry of Energy and Mineral Resources. HBA is now at its highest since December 2016.

Coal is expected to remain a vital source in meeting Indonesia's growing domestic electrification needs. In 2015, Indonesian President Widodo unveiled an ambitious 35,000 MW program to boost the country's electrification ratio to 97% by 2019, with about 25,000 MW of capacity expected to come from coal-fired power plants.

Two key factors currently driving the price of oil price include an upcoming decision by OPEC on whether to extend production cuts (30 Nov), in addition to continued production growth of shale in the US.

While price of WTI Crude Oil rallied +38% from 21 June to 8 Nov, this was largely a price recovery with the current price +3% higher than its end of 2016 level. This has coincided with downstream plays, more sensitive to global growth and trade, outperforming the oil & gas upstream plays.

SGX lists eight Agricultural Products stocks with a combined market capitalisation of S$29 billion. In the 2017 YTD, these stocks averaged a -13.7% price change, compared to +16.7% in 2016. Global Palm Resources Holdings, which registered a price change of +15.4% in the YTD, was the best-performing stock in the sector.

Zion Market Research has forecast the global palm oil market to grow at a CAGR of 7.2% between 2016 and 2021. Growth drivers include higher living standards, changing eating habits, growing demand for vegetable oil as a feedstock for biodiesel production as well as low prices compared to soybean and other vegetable oils.

Palm oil prices for the rest of 2017 are projected to remain firm, given the seasonally strong fourth quarter, according to Bloomberg Intelligence. A further boost could come from weaker-than-expected output, as well as an anticipated cut in Europe's import tariffs for Indonesia's biodiesel.

Spot gold has fallen over 4% since hitting a one-year high of US$1,349.22 on 7 September 2017, which reduces its YTD gain to 12%. Bullion's performance has been impacted by flagging investor interest after the recent surge in US equity markets, the focus on cryptocurrencies like Bitcoin, and as central banks began paring their stimulus policies.

The World Gold Council has consistently flagged the diversification role of gold, noting that the commodity fulfils a classic role as a haven asset. A key motivation for including bullion in a portfolio has been the metal’s history of maintaining low correlations to most other asset classes, which helps to reduce overall portfolio risk.

Singapore retail space vacancy rose to 7.7% in 1Q17 despite a 2.9% QoQ decline in price rentals. However, impact of retail headwinds may not be evenly felt across all malls.

New supply of retail malls largely located in Outside Central Regions, in line with the government’s plan of decentralised business districts and growth of regional centres.

SGX lists 12 Retail REITs & Property Trusts which have retail properties within their asset portfolios with a combined market capitalisation of S$30.9 billion. These 12 trusts have generated a market cap weighted average total return of 16.2% in the YTD and have an average dividend yield of 6.1%.

Hotel RevPar in 2016 fell 4.7% YoY despite an increase of 7.7% in tourist arrivals, with a slower rate of decline since 2017. Hotel occupancy rates remain at an 8 year average of 86%.

New hotel room supply in 2017 stands at 3,400 rooms (URA 1Q17 data), 60% higher YoY, but supply is expected to ease in 2018 due to lack of supply of new land for hotel development.

SGX lists one Hospitality REIT and five Hospitality Stapled Trusts with a combined market capitalisation of S$9.1 billion. These six trusts have generated a market cap weighted average total return of 19.0% in the YTD and have an average dividend yield of 6.5%.

Office space supply is expected to peak in 2017 and taper off in the next few years. CBRE Research believes that sentiment has swung from pessimism to optimism as investors forecast a period of relatively modest supply over the next few years.

SGX lists six Office REITs (GICS®) with a combined market capitalisation of S$12.8 billion. These 6 trusts have generated a market cap weighted average total return of 16.9% in the YTD and have an average dividend yield of 5.7%.

Existing property cooling measures are likely to remain despite recent calibrated adjustments. In the medium term, MAS believes that Singapore’s property prices should be aligned with broader income trends in the local economy.

SGX lists six Real Estate Management & Development (GICS®) stocks with market capitalisation above S$1 billion that have substantial exposure to the Singapore property market. These six companies have an average total return of 29.2% in the year thus far.

The SGX Real Estate Index, a benchmark for Singapore’s Real Estate Sector, has returned 19.5% in the YTD. Domestic private home prices have shown signs of stabilisation in recent months, with a pick-up in primary transaction volumes.

There are 104 Real Estate companies (diverse across assets) with a combined market capitalisation of almost S$190 billion listed on the SGX. Some key drivers for the sector include population growth, government cooling measures, land supply and interest rates.

US 3Q GDP will be released on Oct 27 (Fri). Focus will be on economic impact from hurricane Harvey and Irma, President Trump’s push for US tax reforms and decision on the Federal Reserve Chair replacement.

The 10 largest capitalized stocks with at least 20% of their revenue from US have averaged a market capitalisation-weighted total return of 35.6% in the year to date. This compares with the Dow Jones Industrial Average and S&P 500 Index’s 13.2% and 9.2% respectively in SGD terms.

The six non-inverse US equity ETFs listed on SGX have averaged a total return of 12.5% in the year thus far. There are 10 US ETFs listed on SGX. Seven track equity indices (including one S&P 500 Inverse Daily (-1x), two fixed-income assets, and one that tracks the money market.

In the year-to-date, the SGX S-REIT Index has generated a 15.5% price gain and 21.2% total return (inclusive of dividends), compared to the benchmark STI’s 15.6% price gain and 19.0% total return. Singapore’s 3-month SIBOR has gained 16.2% in the same period.

In theory, a rise in interest rates will lead to an increase in borrowing costs, which impacts the profitability of REITs and their ability to make acquisitions. However, gradual rate increases are also often associated with improving economic growth, which indirectly boosts REITs’ earnings.

The SGX S-REIT Index maintains a median gearing ratio of 34.0%, below the 45.0% limit. In terms of valuation, yield spreads between S-REITs and 10-year government bonds are at 385bps, 39bps above the long term average of 346bps.

China’s 2017 GDP forecast was revised higher to 6.7% QoQ. Some of China’s growth drivers for the economy include its OBOR Initiative, supply-side structural reform, SOEs reform, growing middle-income class and domestic consumption, and the “Made in China 2025” new economy programme.

Close to a quarter (or 180) of SGX-listed companies generate at least 20% of their revenue from China and 80% of these companies derive half or more of their revenue from China. These companies provide investors with revenue exposure to China’s growth story.

In the 2017 YTD, Singapore’s FTSE ST China Index has generated a total return of 17.9%, compared to a 14.9% return for the H-share Index in SGD terms.

The FTSE ST China Index consists of FTSE ST All-Share Index constituents that report either at least half of their sales revenues from Mainland China, or report at least half of their operating assets in Mainland China.

CWT, Hi-P International, Valuetronics Holdings and Geo Energy Resources will join the FTSE ST China Index on 18 September. This will take the number of constituents in the Index to 21. There are no Index exclusions following the recent review.

These four pending FTSE ST China Index entrants have generated average price gains of 72% in the 2017 YTD, ranging from a 8.9% gain for Geo Energy Resources to a 172.6% gain for Hi-P International.

The Materials Sector has been Singapore’s second best performing Sector in the 2017 YTD with a market capitalisation-weighted average price gain of 31%. This compared to a 10% gain for the MSCI World Materials Index.

The YTD median gain of Singapore’s 10 largest capitalised Materials stocks was 5%, with a much higher average gain of 54%. Meanwhile, Singapore’s 10 largest capitalised Materials stocks that report the majority of their revenue to China generated a YTD median gain of 44% and average gain of 87%.

With its geographical proximity and relatively low risk profile, ASEAN is expected to be a key beneficiary and bridgehead of OBOR as it sees more infrastructure developments and improvements, as well as increased trade and regional connectivity in the region.

Singapore, being a member state of ASEAN, has significant roles to play in the OBOR initiative through its status as a financial hub. In addition, Singapore has established industries with the expertise to drive and support infrastructure development for OBOR in ASEAN.

Environmental protection and pollution control are becoming increasingly important in China’s policies, as the country strives to develop an ecological civilisation. During its journey to become a green economy, businesses with a focus on environmental utilities in China will likely play important roles.

The Chinese government has stepped up efforts to boost environmental protection in recent years, launching several initiatives to promote a greener and cleaner economy, investing in renewable projects and increasing enforcement on pollution domestically.

20 of the biggest and active stocks with a China head office have averaged a market capitalisation-weighted total return of 39.8% in the year to date. This compares with the Shanghai Stock Exchange Composite Index’s (SHCOMP) +8.0% (in SGD terms).

The 20 biggest stocks maintain market capitalisation-weighted P/E and P/B ratios of 11.2x and 1.3x respectively, below 17.6x and 1.9x respectively for the SHCOMP. Nine of these stocks maintain higher ROEs than the SHCOMP’s 10.7%.

The five best performers among the 20 stocks in the YTD are Delong Holdings, Yangzijiang Shipbuilding, China Sunsine Chemical Holdings, Yanlord Land and China Aviation Oil. They maintain an average ROE of 16.2%.